New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-29
THE 4DMINLSTRA TONS SPECULATIVE
POLICY

Longer experience viii convince Secrc
| tary Farchih that this Administra-
ton is not called upon to shape
its financial policy with an eye single to
speculation His imitation of tho circulation.
his many recent outgivings in regard to the
large supply Of money upon which the Street
can rely his order of Friday to prepay interest
without rebate, have all been calculated to
heIp SPECTATORS rather than substantial pro-
ducers or legitimate merchants. For tie Sec
rotary should not need to be told that the solid
prosperity of the country could in no way be
more surely promoted than by dlscouraglne
the excessive speculation which has done and IL
still doing so much mischief. A speculative
policy is precisely not the policy for honest
PRODUCERS or for the traders who handle things
instead of options.
Naturally connected with the Secrctary's
mistake in policy is his mistake in the choice
of means. His idea that he can meet all en-
barrassment by offering to prepay interest or
20 buy bonds is based on error. Men who have
interest to collect or bonds to sell arc not all
inclined to put out their money on call In
Wall Street, even at any time, nor are they all
attracted into that use of money by higher rates
there nor arc they at all times inclined to buy
securities as soon as they have idle money on
hand. A large share of the money which can
be drawn on the offer to prepay interest is
therefore not drawn, as the Secretary now per-
cciycs, and it will be found that much of the
money taken from the Treasury by this process
fails to reach speculative channels.
A financial journal of Democratic opinions
observes that various things should give the
public perfect rost in the belief that Secretary
Farchild has complete command OF the situa-
ton, and that nothing will be allowed to dis
turb legitimate business This was printed on
Saturday after Friday had illustrated the
complete command upon which the public is
expected to rely. But Mr.. Farchild's method
is not calculated to help legitimate business.
1t is peculiarly calculated, on the contrary, to
subject legitimate business to frequent distu
ancc 10y violent fluctuations in the market If
Government could increase real prosperity
simply by issuing more money. the country
might be happy as long as it could build new
printing presses. But sad experience teaches
that, beyond q certain point, imitation OF the
currency ceases to initiate prices, and that there
inevitably follow violent reactions with disaster
TO all producers. The notion that more money
can Insure prosperity Ids oceh Pooui"'J
Democratic belief, which that party has ex-
pressed in its platforms and on which it has
tried to act in Congress for many years. We
ale now witnessing test of it's practical
effects. Prices were lifted easily for time.
Then came dstrust, and feeling that prices
were as high as facts warranted, and a refusal
to buy more, and presently gradual decline.
as SPECTATORS for an advance became discOur-
aged. There is no help for it, prices cannot
long be manufactured by the printing press.
nor can prosperity be permanently aided. cx-
cept by policy which discourages speculation
and promotes production and legitimate trade.